20 July 2005
Sohar (ONA) - Oman Oil Company (OOC), Oman Refinery Company (ORC) and LG International of Korea yesterday signed a shareholders agreement for Sohar Aromatics Complex valued at $956 million. The agreement was signed at the Ministry of Oil and Gas.
While Dr Mohammed bin Hamad bin Saif Al Romhi, minister of oil and gas, and deputy chairman of OOC board signed for the OOC, Nassir bin Khamis Al Gashmi, oil and gas ministry undersecretary and chairman of ORC board, and Dong Hwan-kang, executive vice-president of LG International, signed for their respective sides.
As per the shareholders agreement, OOC owns 60 per cent of the project and the remaining percentage is equally divided between Oman Oil Refinery and LG.
The project will start commercial operation during the third quarter of 2008. It will produce 800,000mtpa of paraxylene and 210,000mtpa of benzene using naphtha produced by the Sohar Refinery Company (SRC).
Paraxylene is a key raw material in the production of polyester fibres and pet plastic bottles. The second petrochemical produced on the complex is benzene which is an industrial chemical used to produce a wide range of plastic (polystyrene, nylon), detergents and other chemicals.
Romhi said that this prestigious project is yet another milestone in the strategic development of Oman petrochemical industry which is expected to play a leading role in the diversification of the economy while creating jobs and further downstream business opportunities.
Al Gashmi said that this is a major project for ORC outside the refining business.
This project will further enhance ORC's contribution to the development of the Sohar industrial area and the national economy while expanding ORC's business portfolio.
Kang said: "I am proud to be one of the members who will write another success story in the petrochemical industry in Oman.
Following Oman polypropylene and ethylene dichloride projects, I am sure that cooperation through this joint venture project will cement further the economic ties between Oman and LG International.
The signing ceremony was attended by Eng. Ahmed bin Salim Al Wahaibi, OOC executive president.
Sohar (ONA) - Oman Oil Company (OOC), Oman Refinery Company (ORC) and LG International of Korea yesterday signed a shareholders agreement for Sohar Aromatics Complex valued at $956 million. The agreement was signed at the Ministry of Oil and Gas.
While Dr Mohammed bin Hamad bin Saif Al Romhi, minister of oil and gas, and deputy chairman of OOC board signed for the OOC, Nassir bin Khamis Al Gashmi, oil and gas ministry undersecretary and chairman of ORC board, and Dong Hwan-kang, executive vice-president of LG International, signed for their respective sides.
As per the shareholders agreement, OOC owns 60 per cent of the project and the remaining percentage is equally divided between Oman Oil Refinery and LG.
The project will start commercial operation during the third quarter of 2008. It will produce 800,000mtpa of paraxylene and 210,000mtpa of benzene using naphtha produced by the Sohar Refinery Company (SRC).
Paraxylene is a key raw material in the production of polyester fibres and pet plastic bottles. The second petrochemical produced on the complex is benzene which is an industrial chemical used to produce a wide range of plastic (polystyrene, nylon), detergents and other chemicals.
Romhi said that this prestigious project is yet another milestone in the strategic development of Oman petrochemical industry which is expected to play a leading role in the diversification of the economy while creating jobs and further downstream business opportunities.
Al Gashmi said that this is a major project for ORC outside the refining business.
This project will further enhance ORC's contribution to the development of the Sohar industrial area and the national economy while expanding ORC's business portfolio.
Kang said: "I am proud to be one of the members who will write another success story in the petrochemical industry in Oman.
Following Oman polypropylene and ethylene dichloride projects, I am sure that cooperation through this joint venture project will cement further the economic ties between Oman and LG International.
The signing ceremony was attended by Eng. Ahmed bin Salim Al Wahaibi, OOC executive president.
© Times of Oman 2005
